TELSTRA GROUP LIMITED — Investor Presentation 2003

Jun 18, 2003

19 June 2003

The Manager

Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000

Office of the Company Secretary

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

Telephone 03 9634 6400 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

Analyst briefing - ACCC Draft Determination on Model terms and Conditions

In accordance with the listing rules, I attach an announcement for release to the market.

Yours sincerely

North Graham

Douglas Gration Company Secretary

Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556

Telstra briefing

ACCC Draft Determination on Model terms and Conditions

June 2003

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ACCC Draft Determination and Telstra Undertakings

• The ACCC draft Determination of the Model T&Cs meets a requirement set down in requlatory $\circ$ changes enacted in December 2002 which are intended to simplify the regulatory regime, increase accounting transparency and place greater emphasis on industry undertakings rather than dispute arbitrations.
• Under the new requlations the ACCC is required draft Model T&Cs by 19 June 2003 $\circ$
• Telstra submitted a set of undertaking prices covering PSTN, LCS and ULL in January 2003. $\circ$
• The ACCC has not yet responded to the Telstra undertakings $\circ$
• The ACCC draft Determination of the Model T&Cs includes indicative prices, and non-price terms $\bigcap$ and conditions of access to the network.
• The draft determination begins a process for industry comment before the ACCC makes a FINAL $\circ$ Model T&Cs determination.
• We expect approximately 4 weeks for public comment $\Omega$
• A further 4 weeks for the ACCC to consider submissions $\Omega$
• FINAL determination by late August. $\Omega$

Investor Relations

June 2003.

• The indicative prices in the Model T&Cs are a preliminary indication of the ACCC's ultimate view $\circ$ of Telstra's undertaking prices. It remains open to Telstra to pursue its undertakings and any potential appeal to the ACT, or to resubmit new undertakings.
• Telstra does not control this process which was established by legislation in December 2002 $\circ$

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ACCC draft PSTN and ULL compared with Telstra Undertakings

l Service	2003/04	2004/05	2005/06
PSTN OTA	1.2 to 1.25 per min	1.1 to 1.15 per min	0.9 -1.0per min
Telstra Undertaking #	1.7per min	1.7 per min

PSTN O/T charges would be equal to conveyance cost after 2005-06 Å,

ULL	$^{\circ}$ ACCC price $^{\pi}$	Previous ACCC prices	Telstra Undertaking #	distribution of the company of the company of the Telstra's undertakings represent
Band 1	$$11 - 14$	\$13	\$20	the "rack rate" but subject to commercial negotiations. Generally discounts apply based on volume, term and credit issues.
Band 2	$$19-22$	\$35	\$40
Band 3	\$35-40	\$39	\$40
Band 4	\$80-100	\$59	\$40

Subject to change each year depending on demand

Investor Relations

^→ June 2003

Artist A $\bullet$

ACCC draft LCS Prices and Telstra Undertakings

ACCC Draft Prices 2002-03 and 2003-04

	Lower bound	Lower bound	Upper bound	Upper bound
	Residential	Business	Residential	Business
Prices with retail discount on	17.95 cents	17.95 cents	18.23 cents	18.23 cents
line rental	\$201.05	\$325.96	\$206.66	\$331.57
Prices without retail discount	12.81 cents	12.81 cents	13.61 cents	13.61 cents	C) Ro
on line rental	\$256.36	\$381.27	\$256.36	\$381.27

Telstra LCS Undertakings

Investor Relations

$-$ June 2003

Telstra Undertaking #	$14.5$ c/call	$14.5$ c/call
vrce	2003/04	2002/05

$#$ Telstra's undertakings represent the "rack rate" but subject to commercial negotiations. Generally discounts apply based on volume, term and credit issues.

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